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German financial watchdog finds anti-money laundering flaws at NordLB
🇩🇪 Germany /Crime & Justice

German financial watchdog finds anti-money laundering flaws at NordLB

From Die Zeit · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News Official statement Under investigation
  • Germany's financial regulator, Bafin, has identified deficiencies in NordLB's anti-money laundering and counter-terrorism financing measures.
  • The identified issues include significant delays in updating customer data and other process deficits, violating the Money Laundering Act.
  • Bafin has ordered NordLB to implement appropriate measures, including a concept for customer data updates and bringing all outdated data up to current legal standards.

Germany's financial supervisory authority, Bafin, has found significant shortcomings in the anti-money laundering and counter-terrorism financing practices of Norddeutsche Landesbank (NordLB). The regulator cited considerable delays in updating customer data and other process deficits as key issues, indicating a violation of the Money Laundering Act.

We are working intensively on fulfilling the requirements and have initiated corresponding measures.

— NordLB spokespersonResponding to Bafin's findings.

Bafin has mandated that NordLB take "appropriate and suitable measures." This includes submitting and implementing a concept for updating customer data. Furthermore, the bank must ensure all non-updated customer data is brought to a current and complete status in accordance with legal requirements. This action follows similar concerns raised by Bafin regarding another state-owned bank, Helaba, in mid-July.

The required concept has been developed and is being consistently implemented.

— NordLB spokespersonDescribing the bank's actions to address Bafin's concerns.

A spokesperson for NordLB stated that the bank is "working intensively on fulfilling the requirements" and has initiated corresponding measures. The bank has developed the required concept and is "consistently implementing" it. NordLB emphasized that it is in "close, constructive, and solution-oriented exchange with the supervisory authority." The bank also clarified that the order pertains to further development and harmonization needs in existing processes, rather than a "general failure of the prevention system."

The Landesbank is in close, constructive, and solution-oriented exchange with the supervisory authority.

— NordLB spokespersonHighlighting the bank's cooperation with Bafin.

According to Bafin, the Money Laundering Act obliges banks to exercise comprehensive customer due diligence. This involves continuously monitoring business relationships and ensuring that relevant documents, data, and information are kept up-to-date. These measures are designed to prevent financial institutions from being exploited to launder proceeds of crime into the legal financial system.

not on a general failure of the prevention system.

— NordLB spokespersonClarifying the scope of Bafin's order.
DistantNews Editorial

Originally published by Die Zeit in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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